Government of India
Ministry of Finance
Central Board of Direct Taxes
Directorate of Income Tax (Systems)
Notification No. 01 of 2021

New Delhi, 22nd June, 2021

Compliance Check Functionalitv for Section 206AB & 206CCA of Income-tax Act 1961
Section 206AB and 206CCA inserted in the Income-tax Act,1961 (effective from 1st July
2021), imposed higher TDSITCS rate on the “Specified Persons’ defined as under,
• For the purposes of this section ‘ specified person” means a person who has not filed
the retums of income for both of the two assessment years relevant to the two previous
years immediately prior to the previous year in which tax is required to be collected,
for which the time limit of filing retum of income under sub-section (1) of section 139
has expired; and the aggregate of tax deducted at source and tax collected at source
in his case is rupees fifty thousand or more in each of these two previous years.
Provided that the specified person shall not include a non-resident who does not have
a permanent establishment in India.

Explanafion.-For the purposes of this sub-section, the expression ‘permanent
establishment” includes a fixed place of business through which the business of the
enterprise is wholly or partly carried on.”

2. To facilitate Tax Deductors and Collectors in identification of Specified Persons as
defined in sections 206AB and 206CCA, the Central Board of Direct Taxes (“CBDT”), in
exercise of powers conferred under section 138(1 )(a)(i) of Income-tax Act, 1961 (Act), has
issued Order via F.No. 225/671202111TA.1I dated 21 .06.2021 , directing that Director General
of Income-tax (Systems), New Delhi shall be the specified income-tax authority for furnishing
information to the “Tax DeductorlTax Collector”, having registered in the reporting portal of
the Project Insight through valid TAN, to identify the ‘Specified Persons’ for the purposes of
section 206AB and 206CCA of the Act through the functionality “Compliance Check for
Section 206AB& 206CCA”.

3. Income Tax Department has released a new functionality ·Compliance Check for
Section 206AB & 206CCAn to facilitate tax deductors/collectors to verify if a person is a
“Specified Person” as per section 206AB & 206CCA. This functionality is made available
through (https:llreport.insight.gov.in) of Income-tax Department. Kindly refer to CBDT Circular

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